A major national joint-stock bank has invested 980 million yuan to become the fourth-largest shareholder of Hongta Bank, a regional lender whose total assets have just surpassed 100 billion yuan. Why is a national player taking an interest in a local bank?
On May 29, Kunming Industrial Development Investment Co., Ltd. announced that it had listed its entire 14.52% stake in Hongta Bank for sale through the Kunming United Assets and Equity Exchange. CITIC BANK was confirmed as the buyer, with a transaction price of 980.6024 million yuan.
Both parties have now formally signed the relevant transaction agreements and are proceeding with the share transfer and related procedures.
This move marks the conclusion of Kunming Industrial Development Investment's multi-year investment strategy, resulting in a complete exit from Hongta Bank. Meanwhile, CITIC BANK secures a position among the bank's top four shareholders.
In 2025, Hongta Bank reported operating revenue of 1.812 billion yuan, a decrease of approximately 16% year-on-year. Its net profit was 529 million yuan, representing a growth of 1.77%. The bank's net interest margin for the year stood at 1.1%, with a non-performing loan ratio of 1.14% and a return on assets (ROA) of 0.35%.
By the end of 2025, Hongta Bank's total assets reached 151.407 billion yuan. Its total loan balance was 69.117 billion yuan, and its total deposit balance was 116.13 billion yuan.
In April 2026, Kunming Industrial Development Investment initially listed its 14.52% stake with a reserve price of approximately 1.021 billion yuan, equivalent to 1.116 yuan per share. However, this initial listing failed to attract a buyer.
The stake was relisted on May 19 and the transaction was completed on May 26, with a final price of about 981 million yuan. This represents a reduction of 40 million yuan compared to the initial listing price.
Hongta Bank was formerly known as Yuxi City Commercial Bank, which commenced operations in 2006. In July 2016, following a capital increase and share expansion that introduced major shareholders including China National Tobacco Corporation Yunnan Branch and Yunnan Hehe (Group) Co., Ltd., the bank was officially renamed Yunnan Hongta Bank.
The acquisition of a stake in a regional city commercial bank with assets just over 100 billion yuan by a national joint-stock bank with assets exceeding 10 trillion yuan highlights the challenges faced by joint-stock banks in the current environment.
By the end of April this year, joint-stock banks accounted for 18.34% of the total assets of commercial banks, a decrease of 0.42 percentage points from the end of 2025.
This declining trend has persisted for several years.
The business model of joint-stock banks relies on specialization, with strengths in retail banking and services for small and medium-sized enterprises. However, in recent years, they have faced pressure from both the business expansion of large state-owned banks into their territories and the localized advantages of city commercial banks.
On one hand, large state-owned banks are expanding their operations downwards, encroaching on the market share of joint-stock banks. On the other hand, retail lending is beginning to contract. Meanwhile, city commercial banks, leveraging strong support from local governments, are deeply exploring regional market potential, leading to stable or increasing market shares.
Particularly during economic downturns, the difficulty of expansion for joint-stock banks continues to rise.
From a capital market perspective, high-quality city commercial banks are increasingly favored by investors.
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